The top 18 stock exchanges in the world account for 87% of global market capitalization, they also account for 87% of global market risk.
Systematic risk as a global and geopolitical phenomenon is a consequence of globalization and the mass aggregation of the world’s wealth into a finite number of interconnected privately owned exchange facilities.
Decentralizing the task attributed to these global exchanges as aggregating centers of wealth and wealth distribution to the regional level provides for the diversification of wealth and risk.
Through regional government oversight within an EU legal framework, establishing a decentralized network of interdependent financial exchanges provides for a broader distribution of income and capital flows. So too, as a direct consequence, there is a movement of skilled people from cities to regional areas.
This decentralized network of regional and local government hosted exchange facilities provides for greater efficiencies in connecting local traders and investors with the financing requirements of local businesses.
By incorporating wearable technology into the risk mitigation and management of trading decisions greater consistency in rates of return and lower volatility of financial instrument prices are attainable and therefore by extension an increase in financial market stability.
The financial markets are the place where the world’s wealth is stored and exchanged. It is estimated that in excess of 100 million people globally trade the financial markets in the hope of creating a secondary income, yet 95% of these traders consistently lose money. 80% of these traders will lose their entire account balance within 12 months.
This is the definition of an epidemic!
Losing traders give 30% of their wealth to the brokerage firms in the form of commissions and in unethical practices. The remaining 70% of their account balance will be lost to successful traders, most of whom work for institutions, like banks, brokerage firms and hedge funds. These large institutions have the financial resources to invest in new and better technologies to always stay ahead of the individual.
But, what if a greater percentage of individuals were successful trading and creating a secondary income through technological financial market change?
It would stand to reason, that more of the world’s wealth would be shared among more individuals, and that is how we create greater income equality and a fairer distribution of the worlds’ wealth.